Microsoft is Buying Skype for $8.5 Billion

Many people are asking “Why would Microsoft buy Skype?” As far as we can tell, the biggest reason for Microsoft to buy Skype is Windows Phone 7 (Mobile OS) and Nokia. The software giant needs a competitive offering to Google Voice and Apple’s emerging communication platform, Facetime.

The biggest winner of this deal could actually be Facebook. Facebook had little or no chance of buying Skype. Had it been public, it would have been a different story. With Microsoft, it gets the best of both worlds — it gets access to Skype assets (Microsoft is an investor in Facebook) and it gets to keep Skype away from Google.

Skype gives Microsoft a  boost in the enterprise collaboration market, thanks to Skype’s voice, video and sharing capabilities, especially when competing with Cisco and Google. It gives Microsoft a working relationship with carriers, many of them looking to partner with Skype as they start to transition to LTE-based networks. It would give them a must-have application/service that can help with the adoption of the future versions of Windows Mobile operating system. Lets hope Microsoft’s bureaucracy doesn’t kill Skype’s innovation.

Advertisements

About SCB Enterprises
System Solutions and Integration

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: